We Help Jess Harness the Sun's Energy to Power Her
Total Page：16
File Type：pdf, Size：1020Kb
WE HELP JESS HARNESS THE SUN’S ENERGY TO POWER HER HOME ENERGY MADE FRESH DAILY SUSTAINABILITY REPORT 2015 CONTENTS 02 .................. MANAGING DIRECTOR’S MESSAGE 04 ..................OUR COMPASS 05 ..................WHERE WE OPERATE 06.................. OUR YEAR AT A GLANCE 08.................. BUSINESS STRATEGY 09 ..................OUR PERFORMANCE 10 ..................GLOBAL TRENDS 12 .................. APPROACH TO MATERIALITY 14 .................. ENGAGING WITH OUR STAKEHOLDERS 17 ................... ENERGY DEVELOPMENTS 32 .................. DELIVERING ENERGY 40 .................. MANAGING OUR BUSINESS 60 .................. FUTURE ENERGY SOLUTIONS 64 .................. PHILANTHROPY 67 ................... RATINGS AND BENCHMARKS 68 ..................GLOSSARY DISCOVER MORE ONLINE IMPORTANT INFORMATION Origin has been reporting its sustainability The following Report includes an assessment performance since 2002 via an annual of upstream activities by Australia Pacific LNG, Sustainability Report. in which Origin has a 37.5 per cent shareholding Unless otherwise stated, Origin’s Sustainability (consistent with its holding as at 30 June 2014) Report provides a summary of activities, operated and is the Upstream operator. assets and non-financial performance between This Report does not contain information 1 July 2014 and 30 June 2015. Emissions on the sustainability performance of Contact performance is reported on an operated and Energy, in which Origin held a 53.1 per cent equity basis. Significant events occurring after interest at the close of the reporting period. the close of the period may also be referenced. After the close of the period, Origin divested Origin’s Sustainability Report outlines the its entire interest in Contact Energy. Information Company’s performance against a number regarding Contact Energy can be found of Material Aspects. Origin’s approach to at www.contactenergy.co.nz. determining Material Aspects is informed All monetary amounts are in Australian dollars by the Global Reporting Initiative and the unless otherwise stated. AA1000 Accountability Principles. WE HELP MAKE PEACE AND QUIET We’re providing energy to millions of homes so kids around the country can enjoy their favourite stories. ORIGIN ENERGY SUSTAINABILITY REPORT 2015 01 MANAGING DIRECTOR’S MESSAGE In seeking to meet this objective, environmental It has long been the case that access to a reliable and economic goals can often be competing and affordable supply of energy has been central but are not necessarily mutually exclusive – they require a balance between them to be met. to the economic development of nations and to At Origin we are always seeking to find this balance, particularly in the opinion of our key the improvement in the standard of living that stakeholders – our shareholders, customers, people naturally seek. employees and the communities we serve. We listen to and consider the opinions of our In more recent times, it has also become the key stakeholders and they inform the choices we create and the decisions we make. objective of our industry that the contribution energy makes to improving living standards BALANCING ENVIRONMENTAL AND ECONOMIC OUTCOMES be achieved in an environmentally as well as As a diversified energy company active in both domestic and export markets, we see that the economically sustainable basis. global energy landscape is subject to continual change. We regularly evaluate how these global trends create opportunities and risks in our business and respond to them appropriately. As world population grows, energy demand grows with it. We know that the carbon emissions associated with traditional forms of energy production have to be significantly curtailed. For this to occur there must be a significant transition in the way energy is produced and used and this necessary transition creates the long term risks for investors in the energy sector. The International Energy Agency (IEA) has been charged by governments around the world to analyse and interpret data relevant to energy and climate change in order to provide guidance on how climate change can be addressed. 02 MANAGING DIRECTOR’S MESSAGE The IEA’s guidance is framed by global warming Notwithstanding this experience, Origin has This year our results are as follows: scenarios – two of which are the New Policies supported the reframing of the Renewable — Total Recordable Injury Frequency Rate Scenario and 450 Scenario – and provides Energy Target and also supports the Australian (TRIFR) for safety: performance improved direction on the appropriate energy mix in Government’s announcement of a post to 3.8 compared with 5.0 in the prior year; order to minimise the impacts of climate change. 2020 emissions reduction target of a 26 to — Total Shareholder Returns for financial In both scenarios, the world must place limits 28 per cent reduction on 2005 levels by 2030 performance: -15 per cent for the year on the use of high-emission fuels such as coal, as a target that is balanced in its aspiration and when compared with +125 per cent increase in appropriate quantities the use its feasibility. Origin looks forward to a successful during the past decade; of natural gas, and grow the contribution global outcome at the COP21 meeting in Paris — Net Promoter Score: a 9 point of renewable energy. in December 2015, and the subsequent policy improvement on the prior year The IEA estimates that an investment of detail that brings clarity and certainty to the to -39, from -48; $2 trillion a year(1) is required through to 2040 energy policy landscape in the years ahead. — Engagement for our people: up 5 points to provide sufficient energy to meet the world’s Each year, Origin publicly reports the absolute to 52, from 47 last year; and growing energy needs on an environmentally emissions and emissions intensity of our power — RepTrak™ for community reputation: and economically sustainable basis. generation and natural gas production activities. at 61.8 which is steady with the prior Throughout the world the transition in the This year’s results reconfirm that Origin’s power year, and the year average up on the way we produce and use energy required to generation activities compare favourably to prior year average. balance environmental and economic outcomes many of our peers and align with both Australia’s With the recent fall in oil prices and the creates significant risks for businesses like and global climate change objectives. prospect that this situation may persist longer Origin. Our industry has invested significantly Given Origin’s integrated business – one that than might have previously been anticipated, in long life, capital intensive, energy producing sees us developing, generating and selling energy our shareholder returns over the year in assets to meet our customers’ requirements – we undertake a diverse range of activities in review have been significantly reduced. for an affordable and reliable supply of energy, the communities in which we operate. We give We have lost some of the balance we seek yet some of these assets are more carbon careful consideration to our environmental to preserve and have taken action to build intensive than many believe is appropriate to footprint across this range of activities, and resilience within Origin to operate in a lower operate in a more carbon constrained future. provide transparency through this report oil price environment and restore balanced Origin has always managed this risk by investing on the environmental impact of our activities. outcomes for our key stakeholders. in less carbon intensive forms of energy such We believe that our performance against as natural gas and renewables, and assets that BALANCING OUR COMMITMENTS these measures helps us understand whether are more carbon efficient than industry average TO STAKEHOLDERS we are getting the balance right in respect – such as the Eraring coal-fired power station. of the commitments we have made to our We also seek to find a balance in our business Recognising the inevitable move to more key stakeholders. in meeting the expectations of our key renewable generation, Origin has remained stakeholders – our customers, shareholders, This is our 14th annual Sustainability Report and underinvested in generation relative to the employees and the communities we serve. details our performance in the Material Aspects energy we sell to our millions of customers. of our business. We believe it demonstrates We recognise these expectations through the This reduces the risk that Origin will have a year of good operational performance across commitments we make in our Compass and stranded generation assets and gives Origin our business and continued progress on building know that fulfilling these commitments can the opportunity to invest in less carbon a strong and sustainable company that finds the often require difficult choices and decisions intensive assets such as renewables when right balance in meeting the expectations to be made if we are to achieve a balanced it is economic to do so. of our key stakeholders. outcome, which will be sustainable over the Governments have a critical role to play in longer term. facilitating a balanced transition to a less carbon intensive economy. They not only set the policy Our principles and values provide the guidance framework in which the industry operates but we need to make these choices and decisions. also often set targets for specific outcomes We set targets and measure performance such as renewable energy targets,